While the recent volatility breakouts in the S&P 500 have scared some investors out of the consumer discretionary space, as cyclical stocks tend to underperform during times of uncertainty, a few positive developments have emerged. Today, macroeconomic data in the United States economy will pay dividends for investors who are willing to look where most won’t.
Consumers worried about the stability of their personal finances have slowed down their spending, as seen in the first decline in consumer spending since 2021 for February 2025’s report. The lack of spending also drove the personal savings rate higher, leaving more cash on the sidelines, likely looking for investment opportunities.
